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32 - AAU - Accounting and Financial Auditing


AAU 307 - IFRS for the Downstream Oil and Gas Sector

Code Start Date Duration Venue
AAU 307 03 October 2022 5 Days Istanbul Registration Form Link
AAU 307 28 November 2022 5 Days Istanbul Registration Form Link
AAU 307 19 December 2022 5 Days Istanbul Registration Form Link
Please contact us for fees

 

Course Description

International Financial Reporting Standards (IFRS) was adopted in more than 100 countries around the globe, and the number is expected to increase with the growing acceptance of these standards. It came as a replacement for the International Accounting Standards (IAS), Since IFRS provide a worldwide standard for financial issues, they are particularly useful for public organizations and large companies that have subsidiaries in different countries. This course sheds special light on the application of IFRS in oil and gas sector. 

Course Objectives

  • Identifying the issues that are unique to the oil and gas companies industry in IFRS 
  • Demonstrating how to respond to the various accounting challenges along the value chain
  • Examining the standards on joint arrangements and consolidated financial statements 
  • Discussing business combinations and the ways to identify them 
  • Understand the basic physical flow of the oil and gas from the lease to the end user

Who Should Attend?

  • Financial accountants in the oil and gas downstream industry
  • Management accountants of the oil and gas downstream industry
  • Internal and external auditors of oil and gas downstream companies reporting under IFRS
  • Financial analysts seeking to improve their understanding of the accounting by oil and gas downstream companies

Course Details/Schedule

Day 1

  • Oil & gas value chain and significant accounting issues
  • Long Lived Assets and Impairment
  • Current IFRS landscape
  • Downstream activities
  • Inventory valuation 
  • Net Realizable Value (“NRV”) of oil inventories 

Day 2

  • Revenue recognition in downstream 
  • Product exchanges 
  • Cost and Freight vs. Free On Board 
  • Oilfield services 
  • Accounting for ETS 
  • Depreciation of downstream assets 
  • Cost of turnaround/overhaul

Day 3

  • Business combinations
  • Identification of a business combination 
  • Acquisition method 
  • Provisional assessments of fair values 
  • Business combinations achieved in stages 
  • Restructuring costs 

Day 4

  • Consolidation, associates and joint Ventures in accordance with IFRS 11
  • Royalties and income taxes 
  • Petroleum taxes – royalty and excise
  • Petroleum taxes based on profits 
  • Taxes paid in cash or in kind
  • Deferred tax and acquisitions of participating interests in jointly controlled assets 
  • Discounting of petroleum taxes

Day 5

  • First time adoption and financial statements presentation
  • Employee benefits and share based payments
  • Leasing 
  • When does a lease exist? 
  • Accounting for a lease 
  • The new IFRS lease accounting rules
  • Presentation and disclosure
  • Financial instruments, including embedded derivatives, hedging and investments including the new requirements under IFRS 9